EURJPY tests previous highs

12/02/2021

The EURJPY cross remains bid on dips, but it was seen consolidating on Friday, getting ready to find its next direction. The cross was trading at around 127 during the US session. 

Bulls are having a hard time pushing the euro above the resistance zone of previous highs in the 127.00 / 127.50 area. There seem to be many offers in this range, halting the upward movement so far. 

However, if the price jumps above 127.50, stop-losses of those short positions will be hit, which might push the euro further higher, targeting the important 130 level medium-term.

Alternatively, failure to break above the resistance could lead to profit-taking and frustration among bulls. 

The intraday support could be at 126.50, with another more robust demand zone at around 126.00. 

Since December, the price has been moving sideways, and periods of low volatility are usually replaced with periods of high volatility. It is only critical to wait for the break from the quiet volatility zone. 
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